Investor Presentation · Source: Euromonitor for market size, comScore for online statistics, eMarketer for millennial statistics, Furniture Today ** Top 10 Retailers: Williams Sonoma,

May 2015

Investor Presentation

SAFE HARBOR

2

This presentation includes forward-looking statements. Wayfair Inc. (“Wayfair” or the “Company”) has

based these forward-looking statements largely on its current expectations and projections about future

events and financial trends affecting its business. Forward-looking statements should not be read as

guarantees of future performance or results, and will not necessarily be accurate indications of the times at,

or by, which such performance or results will be achieved. Forward-looking statements are based on

information available at the date of this presentation and management’s good faith belief as of such date

with respect to future events, and are subject to risks and uncertainties that could cause actual

performance or results to differ materially from those expressed in or suggested by the forward-looking

statements. Important factors that could cause such differences include, but are not limited to: our ability to

acquire new customers, our ability to sustain and/or manage our growth, our ability to increase our net

revenue per active customer, our ability to build and maintain strong brands and other factors discussed

under “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of

Operations” in periodic filings with the Securities and Exchange Commission (the “SEC”). In addition, in this

presentation, the words “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,”

“predict,” “potential” and similar expressions, as they relate to the Company, business and management,

are intended to identify forward-looking statements. In light of these risks and uncertainties, the future

events and circumstances discussed in this presentation may not occur, and actual results could differ

materially from those anticipated or implied in the forward-looking statements. Forward-looking statements

speak only as of the date of this presentation. You should not put undue reliance on any forward-looking

statement. The Company assumes no obligation to update any forward-looking statements to reflect actual

results, changes in assumptions or changes in other factors affecting future performance or results, except

to the extent required by applicable laws. If the Company updates one or more forward-looking statements,

no inference should be drawn that it will make additional updates with respect to those or other forward-

looking statements.

OUR MISSION

3

To transform the way people

shop for their homes

A CLEAR ONLINE LEADER IN HOME GOODS

4

MASSIVE ONLINE CATALOG with over 7,000,000 home products

SUPPLIER DIRECT FULFILLMENT NETWORK connecting over 7,000 suppliers

$1,465 MILLION of LTM net revenue with minimal inventory

63% Q1 YoY GROWTH in direct retail, 52% total growth

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 LTM

LARGE SCALE WITH SIGNIFICANT GROWTH

5

240+ Niche Websites

Platform Development

Brand

Consolidation

Brand

Building

$1,319

$916

$601

$517

• Founded as CSN STORES in 2002

• BOOTSTRAPPED for the first 9 years

• FOUNDER-LED since inception

• REBRANDED AS WAYFAIR in 2011

• 63% Q1 YoY DIRECT RETAIL GROWTH; 52% total LTM growth

Other Direct Retail

$1,465

FIVE DISTINCT HOME BRANDS

6

Typical customer: 35 to 65 year old woman with an

annual household income of $60,000 to $175,000

Est. 2011 Est. 2011 Est. 2006 Est. 2014 Acq. 2013

LARGE, HIGHLY FRAGMENTED MARKET MOVING ONLINE

7

Source: Euromonitor for market size, comScore for online statistics, eMarketer for millennial statistics, Furniture Today

** Top 10 Retailers: Williams Sonoma, Ikea, Ashley’s, Berkshire Hathaway Companies, Rooms to Go, Pier 1, Restoration Hardware, Mattress Firm, Raymour &

Flanigan, La-Z-Boy

**Millennials defined as individuals currently between the ages of 18 and 32. Based on 2013 data

Growth Potential of U.S.

Home Goods Market

2013 2023

15%-

30% $45

$297

$233

$16

7%

($B)

Online Other

$90

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2013

Total Furniture

Sales by Retailer

$233

Other Top 102

7%

15%

54%

Home Goods Apparel ConsumerElectronics

Significant Upside in

Online Penetration

2013 Online Penetration of Selected

Verticals

WELL POSITIONED RELATIVE TO OTHER RETAILERS

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High End ($175K+)

Mass Market ($60K-$175K)

Low End ($60K)

Design Centers

HOME SHOPPERS DESIRE UNIQUENESS

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#1 in 42”

LCD TVs

#2 in 42”

LCD TVs

#3 in 42”

LCD TVs

#4 in 42”

LCD TVs

We do not all sleep in the same style bed…

...but a lot of us own the same TV and

view it as reassuring

HOME IS SHOPPED VISUALLY

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Inspiration

Discovery &

Education

Search Based Site

HOME IS SHOPPED VISUALLY

11

CPG Category Example: Paper Towels Home Category Example: Lighting

DIFFICULT TO INVENTORY

12

Source: 2013 data from Freedonia, Fisher International, Euromonitor

INDUSTRY SIZE: $7B INDUSTRY SIZE: $7B

Operational Platform Technology Platform

REQUIRES CUSTOM-BUILT TECHNOLOGY AND OPERATIONAL PLATFORM

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• Proprietary and purpose built

• Real-time data, dynamic changes

• Personalization

• Mobile optimized

• Running at massive scale

• 300+ engineers / data scientists

• Over 17 million orders since

inception

• 2014 North America average time

to ship of 2.2 days

• Extensive supplier integration and

direct fulfillment network

• Proprietary transportation network

• Minimal inventory and capex

• 700+ customer service reps

Source: eMarketer as of 2014. 1 Includes impact of smartphones and tablets. 2 Direct Retail orders generated primarily through the sites of our five brands.

PLATFORM SHIFT TO MOBILE AMPLIFIES OPPORTUNITY

SIGNIFICANT OPPORTUNITY GOING FORWARD

14

US eCommerce Mobile Sales ($B)1

$41

$131

2013 2018

34%

Direct Retail orders via mobile in Q1 20152

26.2% CAGR

INCREASING PERSONALIZATION DRIVES GROWTH AND REPEAT BEHAVIOR

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“Tikes’ top picks: Playroom furniture

and toys by KidKraft”

“Prep for in-laws and overnight guests

with holiday furniture for every room”

“Purrr-fectly affordable finds for

cats (and feline fans)”

Emails from 12/2; Ability to send 1M+ variations

TECHNOLOGY AND OPERATIONS ARE RUN AT SCALE: 1 DAY OF ORDERS

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SCALE DRIVES POWERFUL NETWORKS EFFECTS

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2,410

3,597

Q1 2014 Q1 2015

(in thousands)

Advertising Spend

133

205

LTM Q1'14 LTM Q1'15

51%

54%

Q1 2014 Q1 2015

(as % of total orders)

Net Revenue

$236 $220

$779 $1,245

LTM Q1'14 LTM Q1'15

55%

60%

49%

1 Defined as customers who have purchased at least once on our brands’ sites during the preceding 12 month period. 2 Defined as total orders delivered from repeat customers.

Active Customers 1 Repeat Orders 2

44%

$1,015

$1,465

Direct Retail

Other

($M)

Total

Enables Strategic

Investment

Fuels More

Revenue

More Customers

More Repeat

Purchases

($M)

Wayfair.com Gross Revenue Per Customer Over Time

INVESTMENT IN ADVERTISTING SPEND RESULTS IN HIGHER REVENUE/CUSTOMER…

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• Customers acquired in more recent periods

consistently spend more over time than

customers acquired in older periods

• For example in the 6th month post their initial

order 2014 customers spent >2x 2011

customers

Re

ve

nu

e/C

us

tom

er/

Mo

nth

Time Since Initial Purchase

x$

2x$

4x$

6x$

8x$

10x$

12x$

14x$

16x$

18x$

2011 2012 2013 2014

…AND GROWING AWARENESS

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Source: Hanover Research

1 Aided Brand Awareness as of April 2014.

Google Trends – Interest in “Wayfair” over time Grew to 62% brand awareness since Wayfair launch in 20111

2014 2006 2008 2010 2012

30.7%

35.2%

41.1% 40.2%

47.3% 48.0% 47.1% 46.8%

50.7% 51.6% 49.8% 50.3%

53.9%

$273 $278 $287

$300 $305 $313 $315

$322 $323 $332

$342 $342 $346

Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015

CUSTOMER ECONOMICS CONTINUE TO IMPROVE

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% Orders from Repeat Customers Net Revenue / Active Customer Active Customers

1.29 1.28 1.26 1.30 1.37 1.51

1.77

2.09

2.41 2.64

2.86

3.22

3.60

CAPITAL EFFICIENT WITH MINIMAL INVENTORY

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Capital Efficient1 Minimal Inventory

1.9

40.9

Days Receivable Days Payable

$601

$916

$1,319

$8 $15 $20

2012 2013 2014

Net Revenue Inventory

($M)

FCF Performance Consistently Better than Adjusted EBITDA

1 Average of last four quarters.

Long-Term Target

LONG TERM TARGET MODEL

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Net Revenue 100% 100% 100% 100%

Gross Margin 24.5% 23.6% 24.2% 25 - 27%

Customer Service + Merchant

Fees 3.9% 4.1% 3.7% 4%

Advertising 11.8% 14.5% 13.7% 6 - 8%

Merchandising, Marketing, and

Sales 3.7% 3.9% 4.6% 2 - 3%

Operations, Technology, General &

Administrative 5.4% 5.9% 5.2% 3 - 4%

Total Operating Expenses 24.8% 28.4% 27.2% 15 - 19%

Adjusted EBITDA (0.3)% (4.7)% (2.9)% 8 - 10%

Note: Merchandising, Marketing, and Operations, Technology, General & Administrative have been adjusted to exclude equity based compensation expenses

and depreciation and amortization expense. See GAAP to Non-GAAP Reconciliation” Appendix.

Prim

arily

he

adco

unt

2013 2014 Q1 2015

ADDITIONAL GROWTH STRATEGIES

CONTINUE BUILDING LEADING RETAIL HOME BRANDS

• Acquire More Customers

• Invest in Consumer Experience

• Increase Repeat Purchasing

• Add New Suppliers

• Invest in Technology and Operations

• Expand Internationally

• Pursue Strategic Acquisitions

• Opportunistically Launch New Brands

WELL DEFINED GROWTH STRATEGY

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RECONCILIATION OF ADJUSTED EBITDA ($ in millions)

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Net Loss ($15.526) ($148.098) ($27.136)

Depreciation and Amortization $13.091 $22.003 $6.744

Equity-Based Compensation - $63.244 $8.162

Interest Income, net ($0.245) ($0.350) ($0.264)

Other (Expense) Income, net ($0.294) $0.489 $0.108

Taxes $0.046 $0.175 $0.046

Adjusted EBITDA ($2.928) ($62.537) ($12.340)

2013 2014 Q1 2015

RECONCILIATION OF FREE CASH FLOW ($ in millions)

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Net Cash Provided by Operating

Activities, Net of Acquisition $34.413 $11.692 ($35.202)

Purchase of Property, Equipment and

Leasehold Improvements ($6.739) ($39.422) ($12.051)

Site and Software Development Costs ($9.040) ($14.130) ($4.115)

Free Cash Flow $18.634 ($41.860) ($51.368)

2013 2014 Q1 2015

Illustrative Customer Acquisition Cost

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Notes:

1. Assumes partner advertising spend is 11.18% of Other revenue as seen in the first six months of 2014 (as disclosed

in our S-1).

2. Calculated as (1-Repeat Rate)*Total Orders.

3. Calculated as Direct Retail Ad Spend divided by Implied “Gross” New Customers.

4. Represents 2014 gross margin of 23.6% less an assumed 4.1% for customer service and processing fees.

(All units in 000s, except per customer figures)

2014

Total Advertising Spend $191,284

Assumed Partner Ad Spend (1) $24,300

Direct Retail Ad Spend $166,984

Active Customers 3,217

Total Orders 5,237

% of Orders from Repeat Customers 50.5%

Implied "Gross" New Customers (2) 2,590

Customer Acquisition Cost (3) $64

Annual Direct Retail Revenue per Customer $342

Annual Contribution per Customer (4) $67

Contribution Margin 19.5%